CHARGES TAKE BITE OUT OF AON`S NET

CHICAGO TRIBUNE

Aon Corp.`s third-quarter profit edged up 2 percent, as a gain on the sale of its stake in a Japanese joint venture was largely offset by one-time charges.

The Chicago-based insurance holding company posted net income of $62.6 million, or 97 cents a share, up from $61.4 million, or 93 cents, a year earlier. Revenue rose 15 percent, to $751.2 million from $653.1 million.

A $38.2 million net gain on the previously announced sale of Aon`s 50 percent stake in Tokyo-based Orient Aon Life Insurance Co. was matched by nonrecurring charges. So the gain added only 1 cent a share to net income.

The charges stemmed from consolidating operations and discontinuing several life, accident and health insurance products. The steps include closing Aon`s data processing center in Chicago by July and moving its operations to an existing center in Trevose, Pa. The changes will cut about 150 jobs across the U.S., though some workers may be employed elsewhere in the company.

Aon`s brokerage operations led third-quarter results, ringing up a 31 percent increase, to $8.1 million, in pretax income before nonrecurring charges. On the same basis, the accident and health business rose 5 percent, to $37.4 million, and life insurance operations fell 2 percent, to $21.4 million.